February 2, 2010 - The Americas market for axial fans was estimated be worth $239.2 million in 2009, having decreased 23.9% since 2008. Whilst majority of this $75 million decrease was attributed to the global economic conditions, sustained outsourcing of production in recent years, has led many to worry that that this is not just the affects of a struggling global economy, but further evidence of sustained decline. So are the days of an Americas market numbered?
Over the last 10 years, electronics designers have outsourced production facilities, and sub-contracted product assembly to increase price competitiveness and focus exclusively on product design and development. This has relocated the market base for constituent components offshore, to the detriment of local component suppliers. The result has been that many American suppliers now view business opportunities within America as limited only to securing ‘design’ contracts. However this is an overly pessimistic view.
Outsourcing assembly is prevalent mainly in the consumer electronics sectors, such as computers, and audio visual equipment. Whilst these constitute two of the largest markets for axial fans, specifically DC product types, they collectively accounted for little over a quarter of the Americas market in 2009. This means that in 2009, over $170 million dollars was attributed to applications currently perceived to be stable, including medical devices, telecommunication infrastructure, and industrial automation machinery.
Senior Analyst Rob Carter comments: “Outsourcing and subcontracting frequently involve high volume projects and so the effects of this trend have been conspicuous. However, this trend is not new and the majority of the customer base likely to outsource production has already done so. The remaining market, although comprising few high volume opportunities, is relatively stable and presents ample business opportunity for companies that can target a broader spectrum of applications.”
Carter continues: “The AC and DC axial fans market was actually experiencing positive single digit growth before the downturn in 2009, albeit substantially less than the markets in EMEA or Asia Pacific. This is reflective of a stable market that is simply losing global share, rather than declining. For this reason growth is expected to return to this market in the latter half of 2010, and over the next 4 years market growth of over $65 million is expected.”
If you would like an interview with an expert in this area, please contact Chris George, Press Manager, at chris.george@imsresearch.com +44 (0) 1933 402255
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IMS Research is a supplier of market research and consultancy services on a wide range of global electronics markets. The company is supported by headquarters in Wellingborough, UK and offices in Austin, Texas and Shanghai, China. IMS Research regularly publishes detailed research on Motion and Drives, Power Transmission markets, among others. www.imsresearch.com
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